Karnataka Budget 2012: Govt accepts pay commission
Bangalore: Karnataka government today presented the Budget that exceeded Rs 1 lakh crore in value for the first time and announced the acceptance of pay commission recommendations bringing cheer to employees.
It also proposed to levy value added tax (VAT) at five per cent on beedies and plastic woven fabrics and increase VAT on cigarettes and other tobacco products from 15 per cent to 17 per cent.
Besides, the government has proposed to reduce the stamp duty from six per cent to five per cent on conveyance/sale deeds which, the government said, would facilitate the registering public and would also trigger development in the construction industry.
“…this budget facilitates a total expenditure of Rs 1,02,742 crore on various development activities and regulatory functions of the Government, which is an increase of 20.42 per cent over the Budget of Rs 85,319 crore in 2011-12”, Chief Minister D V Sadananda Gowda said in the Legislative Assembly.
“This is the first time the Budget size has exceeded Rs 1 lakh crore”, he pointed out. Revenue surplus is estimated to be Rs 931 crore. Fiscal deficit is expected to be Rs 15,312 crore, which is 2.94 per cent of the GSDP.
Recommendations of the official pay committee for government employees would be given effect from April 1, Gowda said, adding that the existing dearness allowances and installment due as on January 1 this year would be merged in the basic pay and pension along with 22.5 per cent increase.